The product smaller-the-better (STB) quality characteristics are continually changing and out of specification limits because of the constant stress, wear and others after the product is put into use, which will cause loss because of the product rejected and scrapped. On the basis of the quality viewpoint that product quality loss is present worth of a loss caused as a result of its quality characteristics because its quality characteristic is out of specification and lead to product scrap after the product is put into service, the paper establishes the present worth model of quality loss of STB characteristic based on service life distribution, and proposes the calculation method on the probability density function (PDF) of the product service life based on the technical specifications of STB quality characteristic. It takes the concentricity between the inner cylindrical surface and the outer cylindrical surface of the link bushing as an example to analysis the various factors that impact on the present worth of concentricity quality loss in the new model, and contrast with Taguchi quality loss model. The results show that the new model describes an actual loss that a product imparts to society after the product is put into service, and can reflect the quality loss of STB characteristic in the product service process, and is more realistic than Taguchi quality loss model of STB. The new model extends tolerance design of STB characteristic from the manufacturing stage to the service stage.
